Headquartered in San Diego, California, Tangiers Investment Group, LLC, has invested in emerging, innovative companies for more than a decade. Through initiatives such as its Fixed Funding Commitment, Tangiers Investment Group, LLC, provides the funds necessary for growth to a range of small and microcap companies.
Today’s investors have no shortage of options when it comes to choosing where to put their money. For active investors willing to take on additional risk, small and microcap companies may prove attractive investment targets. Defined as companies with a market capitalization value of between $50 million and $300 million (microcap) and $300 million and $2 billion (small cap), microcap and small-cap companies offer a number of potential benefits:
1. More Choices. Because market indexes such as OTCQB have less stringent requirements for listings than larger indexes such as the New York Stock Exchange (NYSE), investors have a wider range of companies to choose from when making investments. Additionally, the largest institutional investors are often focused on large-cap companies when making investments, meaning microcap and small-cap firms are often ignored. This means more opportunities for other investors.
2. Potential for Undervalued Opportunities. The world’s greatest investors made names for themselves by identifying undervalued companies and making early investments in them. Because many microcap and small-cap companies are still in the early stages of development, they provide more opportunities for investors who do their due diligence to realize greater returns.
3. Historic Success. Though small-cap and microcap companies bring with them added risk due to the early stages and small sizes of the companies, some microcap indexes actually have outperformed larger stock indexes on average over time.
